Audit 299015

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Council's summary of significant accounting policies is presented in Note 2 in the Council's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Council did not elect to use the 10% de minimus indirect cost rate for the year ended December 31, 2022, as allowed under the Uniform Guidance. The Council's indirect costs are recovered on the basis of indirect cost rates included in Indirect Cost Proposals prepared by the Council, and reviewed and approved by the U.S. Department of Health and Human Serivces. Indirect cost rates approved in the Council's agreements are for use on grants, contracts and other agreements with the Fedceral Government, subject to the conditions in the Nonprofit Rate Agreements. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of AFL-CIO Appalachian Council, Inc. (the “Council”) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council.

Title: Note 2 - Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Council's summary of significant accounting policies is presented in Note 2 in the Council's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Council did not elect to use the 10% de minimus indirect cost rate for the year ended December 31, 2022, as allowed under the Uniform Guidance. The Council's indirect costs are recovered on the basis of indirect cost rates included in Indirect Cost Proposals prepared by the Council, and reviewed and approved by the U.S. Department of Health and Human Serivces. Indirect cost rates approved in the Council's agreements are for use on grants, contracts and other agreements with the Fedceral Government, subject to the conditions in the Nonprofit Rate Agreements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Council’s summary of significant accounting policies is presented in Note 2 in the Council’s basic financial statements.

Title: Note 3 - Indirect Cost Rates Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Council's summary of significant accounting policies is presented in Note 2 in the Council's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Council did not elect to use the 10% de minimus indirect cost rate for the year ended December 31, 2022, as allowed under the Uniform Guidance. The Council's indirect costs are recovered on the basis of indirect cost rates included in Indirect Cost Proposals prepared by the Council, and reviewed and approved by the U.S. Department of Health and Human Serivces. Indirect cost rates approved in the Council's agreements are for use on grants, contracts and other agreements with the Fedceral Government, subject to the conditions in the Nonprofit Rate Agreements. The Council did not elect to use the 10% de minimus indirect cost rate for the year ended December 31, 2022, as allowed under the Uniform Guidance. The Council’s indirect costs are recovered on the basis of indirect cost rates included in Indirect Cost Proposals prepared by the Council, and reviewed and approved by the Department of Health and Human Services. Indirect cost rates approved in the Council’s agreements are for use on grants, contracts and other agreements with the Federal Government, subject to the conditions in the Nonprofit Rate Agreements.